Savannah morning news. [volume] (Savannah) 1868-1887, 1887-04-03

t;tA09'aniElal tran spoftatlon WAS cheaper
than AAtl traffic, but for distances ut
twenty-five miles or more rail
tran portatlon at profitable rates
time great agricultural centres
were reached. 1t was found that UPON
some materials of large bulk the estab-
lished rates were such that 20 shipments
could be profitably made. This discovery
gave the railroad people their first lesson
in the art OF sSprom citing transportation"
When different lines were completed to
points where they came into competition
with each other and with water lines, the
railroad managers first awOke to the fact
that they could compete with the water
lines with which they had never before
expected to do, and here first was pre-
sented the question of accepting less for
"a long than for short haul.
SEEMINGLY A PARADOX.
A discovery was made which was and
is seemingly paradox 1t was that
'straflic could be transported ana yield q
profit at rate that is less than the aver
age cost; that additional traffic secured
at a rate that yields revenue in excess OF
the additional cost of carriage, though
less than the average cost, produces a
pretit."
Mir. smith contended that the rates fixed
by the Louisville and Nashville Com
pany are not in violation Of the
act of Congress. 1t prohibited
from charging less for longer
distance than for shorter where
the conditions are substantially similar.
Then, he argued, they were authorized to
charge less for a longer than for a shorter
distance where the conditions are sub.
stantially dissimilar, provided the rates
to and from non-competitive points are
Just and reasonable. Some OF his associ-
ates, representing other large corpora
tiOns, did not agree with him, but held
that under no conditions could any
greater charge be made Tor a shorter than
for longer haul unless authorized by
this commission.
ARRANGEMENTS TERMINATED.
Mr.. Smith said his company had re-
ceived notices from all the great lines of
the North that from and after April 5
all existing traffic arrangements must
cease. This was aue, he explained, to a
difference in the Interpretation of the
law. These roads based their action
upon the refusal of the Louisville and
Nashville to reduce its local rates below
its through rates, holding that they would
incurred by the former. MIR. Smith set
forth at considerable length the ciroum-
stances which led the Northern
trunk lines to make such
construction of the law. They
were not subject to such An extent to
water competition, and their interpreta-
tiOn was the only one that was advan-
tageous TO them. They would appear be-
tore the commission and advocate an in-
depreciation whioh would "benefit them
but bankrupt u.s." Mr.. Smith did not be-
agitation. Surely carriers were not to be
punished for violation of law which they
could not understand. 1t was clear now
that the commission should have been Or
ganized and should have heard these
questions and decided them earlier. IL
the anticipated changes were enforced at
once commercial distress would at least
be threatened.
GEN. ALExANDER's POSITION.
Gen. Alexander, President OF the Gen.
trail railroad OF Georgia, set forth the Tea-
sons which led his line To give lower
rates IRON New YORK to Macon and
Montgomery than TO Mobile and New
Orleans. The latter points were reached
by competitors who we're entirely inde-
pendent Of the commission. Not more
that two or three OF the lines comprising
the association were paying. His own
line was one of the paying ones, but did
not pay exorbItantly. II compelled to
water rates, to New Orleans. his CON-
pany would lose Sl0'in local traffic for
every So gained In through traffic.
Edgar III. johnson, general counsel for
the East Tennessee, Virginia and GeOr-
gia railroad, said 1t was very evident
that the commission could not investi-
gate the questions presented and TO be
presented between now and April B, yet
it was equally evident that unless relief
were granted all commerce between
North and South must end on April 8,
since the Northern roads would not risk
the penalties which might be incurred
by following any other than their own iu-
depreciation Of the law.
MR.. FINK's GLOOMY VIEW.
Henry Fink, Vice President of the East
TENNESSEE Virginia and Georgia road,
SAID as read the construction of the long
aud snort haul provision meant bank
ruptcy. This provision he was sure was
a concession 10 popular clamor and TO abb
stract sentiment. Congress had found it
necessary to put it in, but had Also found
it necessary to empower the commits
sion to suspend il. What kind OF
schedules " ere the roads to file between
now and April 8. Ifthey put up through
rates to the level with local rates they
would lose their traffic, and that meant
bankruptcy. II they put down local
rates they could never get them back, aud
that, too, meant bankruptcy. Several
hours were spent by the CON-
missioners today in opening letters
and giving hasty informal Chances at
their contents, after which they were
passed to the acting Secretary, Maj.
Jones, for briehng, jacketing and classl-
tication. A majority Of them, not in
GLIDING applications for clerksnips, con-
sist OF requests for the Interpretation OF
special points of thelaw, and not fe " ask
about points which the language oil the
measure explains plainly in full. The
commission adjourned at 6 O'Clock.